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Redundancy Claim Payout

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Newbie

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Replies 2

Hello, after a couple of years of chasing a redundancy through mediation I recieved an out of court settlement.

Is the payout subject to tax?

1 ACCEPTED SOLUTION

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Most helpful response

ATO Certified Response

Devotee

Replies 1

Hi @PaulRichardson

 

This is a good question, however may I suggest gathering your settlement payment information, and getting in touch with the ATO early engagement team.  An officer will make contact with you via your preferred method in a matter of days and clarify your reporting obligations (if any). The reason I suggest this path is because redundancies and termination payments have several types of 'lump sums' that are taxed and reported differently to normal income. In addition there are ‘caps’ and other considerations, so it’s already potentially complex before you even consider a back-payment that was made to you as a result of proceedings before a court.

 

I hope the above avenue gets you a quick answer.

 

Cheers,

 

(Disclaimer - ATO employee here voluntarily helping out - hopefully saving ppl a phone call or two)

 

 

2 REPLIES 2
Highlighted

Most helpful response

ATO Certified Response

Devotee

Replies 1

Hi @PaulRichardson

 

This is a good question, however may I suggest gathering your settlement payment information, and getting in touch with the ATO early engagement team.  An officer will make contact with you via your preferred method in a matter of days and clarify your reporting obligations (if any). The reason I suggest this path is because redundancies and termination payments have several types of 'lump sums' that are taxed and reported differently to normal income. In addition there are ‘caps’ and other considerations, so it’s already potentially complex before you even consider a back-payment that was made to you as a result of proceedings before a court.

 

I hope the above avenue gets you a quick answer.

 

Cheers,

 

(Disclaimer - ATO employee here voluntarily helping out - hopefully saving ppl a phone call or two)

 

 

Highlighted

Newbie

Replies 0

Hello Miccles,

Thank you for your reply to muy question, I will do as you suggest.

Much Appreciated,

Paul.